This property delivered a total equity IRR of 24%.
Abacus acquired Birkenhead Point Outlet Centre and Marina, Sydney in November 2010 for $174 million in a 50/50 joint venture with the Kirsh Group. The property was acquired very well on a strong $5,400m2 and an 8.0% initial yield.
The property was acquired following a $50 million partial refurbishment of the centre, the effects of which had not been fully realised. Abacus had a vision to develop the asset into Australia’s premium outlet centre combined with a quality convenience based shopping offer to satisfy a strong and growing trade area. Abacus and the Kirsh Group continued to refurbish, redevelop and upgrade the centre and marina, improving the convenience based tenancy offering while remixing the wider outlet tenancy offering to cater for high end brands. The Marina was improved to increase the number of births, provide fuel services and allow access for larger vessels and the Centre was improved through the addition of ALDI, Nike and other strong retail tenants. MAT was significantly improved from $125 million to $180 million. These activities positioned the property as a highly attractive institutional grade core asset.
As a result, the property was sold in August 2014 to Mirvac for $310 million. The sale again illustrates Abacus' ability to identify value gaps, commit and deliver large scale redevelopment and refurbiuishment works while completing a near total re-tenanting exercise and driving strong total returns.
|Acquisition price||$174 million|
|Sale price||$310 million|
|Capital uplift||$136 million or 78%|
|Gross lettable area||32,483m2|